Comparing International Money Transfers from Australia: What to Check Before You Send
Understanding what an international money transfer is
An international money transfer moves money electronically from your account in Australia to an overseas account. People commonly use international transfers to send money to their own overseas account, to a family member or friend, or to pay for an international purchase.
When you compare providers, it’s important to keep in mind that comparison services may not cover every provider or service available in the market. At times, certain providers or currencies might not be available, and not all brands may be available through a comparison site.
Why compare money transfer providers?
Comparing can help you look for value across exchange rates and fees, while also checking practical details like transfer limits and how long a transfer may take. Some comparison services describe their technology as trusted, free, safe and secure, and note that they partner with licenced and reputable companies. Even so, you should still evaluate your own needs and confirm any details that are important to your decision before proceeding.
Exchange rates: what they are and why timing can matter
An exchange rate expresses the value of a foreign currency relative to the Australian dollar (AUD). When you make an international money transfer, the money is converted from AUD to another currency at the exchange rate listed by your provider at the time the transaction is performed.
Exchange rates can fluctuate throughout the day. While predicting exchange rate movements is considerably challenging, watching the markets and paying attention to timing may help you act when rates are more beneficial to you.
Some displayed exchange rates are updated daily at approximately 4:15 pm (AEST) and may be indicative only. If you proceed with a provider, you may receive a final rate at the point of transaction.
Fees and commissions: what you might pay
Costs can vary by provider. Typically, you may pay a percentage-based commission to the provider and potentially a per-transaction currency exchange fee on top of that. Because rates and fees can differ, comparing is a practical way to understand the total cost of sending money overseas.
You may also find that you’re likely to receive a more favourable rate when transferring larger amounts. If you plan to transfer money regularly to the same person or account, it may be worth considering whether making a smaller number of larger transfers could be more beneficial than making many smaller transfers, depending on the provider’s pricing.
Using banks vs online money transfer services
Exchanging currency or sending money internationally through a bricks-and-mortar bank can sometimes leave you with less money in your pocket compared to exchanging via an online money transfer service. Whichever option you choose, it pays to do your research, particularly if you’re using an online comparison tool to review providers.
Security and reputation: protect your information
Before providing private and sensitive information to an international money transfer site, check that the company is reputable and that its website is secure. Some comparison services state they only partner with licenced and reputable companies, which may provide additional reassurance when comparing options. Regardless of where you compare, always take care when providing personal and/or bank details.
What you’ll need to send money overseas
To send money overseas, you’ll need to meet the provider’s identification (ID) requirements before you can use their service. Providers may also require details about the recipient. Make sure you have the necessary information ready before you begin a transfer.
How long transfers can take
Several factors can affect how long your transfer takes. A provider may be able to estimate the transfer time if you tell them how much you’re looking to send and where it’s going.
Recipient requirements and alternatives
To claim funds sent via an international money transfer, the intended recipient must have a bank account. If they don’t, you could potentially opt to send physical cash via a money transfer instead.
Transfer limits: minimums and maximums
Minimum and maximum transfer amounts can differ depending on the provider you choose. Some providers may not impose a minimum or maximum amount, allowing you to send any amount you like. Others may impose a transfer limit, which can affect how you plan your payments.
Key points to compare before choosing a provider
Exchange rate offered at the time of transfer: Rates differ by provider and can change over time.
Fees and commissions: These may include a percentage-based commission and a currency exchange fee per transaction.
Transfer time: Timing can vary, and providers may estimate timeframes based on amount and destination.
Transfer limits: Check for any minimums, maximums, or other restrictions.
Security and licensing: Confirm the provider is reputable and the website is secure before sharing sensitive details.
Coverage of comparison services: Not all providers, services, brands, or currencies may be included.
Important reminders when using comparison information
Comparison services may cover a range of providers and services but not every option in the market. They may also state they are not making any suggestion or recommendation about a particular product or service. Before acting on any information, consider your needs, objectives and situation, confirm any details that matter to your decision, and read the information provided by the provider before making a final choice.